Top Headlines

MiFID II Expected to Cost Buy-Side Over $1 Billion – The Trade

Implementing MiFID II has been forecast to cost the financial industry a total of $2.1 billion in 2017, according to a recent report.

CFTC Expands Requirement for Interest Rate Swap Clearing – The Hill

The CFTC unanimously approved a final plan to expand the clearing requirement for interest rate swaps to include those denominated in nine new currencies.

Dollar Rises Amid Concern Over Deutsche Bank, Upbeat Data and Higher Oil Prices – Wall Street Journal (subscription)

The dollar firmed as fears over German banking giant Deutsche Bank boosted the appeal of safe-haven currencies.

Planned Global Banking Rules Not Balanced, Need Changes: EU’s Dombrovskis – Reuters

A planned reform of global banking rules being discussed by the United States, Europe, Japan and other major economies risks negatively affecting European banks and needs to be changed, the EU financial services commissioner said.

Senate Panel Unanimously Approves CFTC Nominees – Wall Street Journal

The Senate Agriculture Committee approved two long-delayed nominees to the Commodity Futures Trading Commission, though it remained unclear if the full Senate would ultimately confirm the pair.

Why Political Risk is Losing its Power to Scare EM Investors – Financial Times (subscription)

Analysts have spent much of the year forecasting the demise of the EM rally, particularly in the foreign exchange market, but have been confounded.

China Yuan ‘Quite a Ways’ From Reserve Currency Status – Reuters

The Chinese Yuan is “quite a ways” from becoming a global reserve currency despite inclusion in the International Monetary Fund’s currency basket, and China needs further reform to reach that goal, US Treasury Secretary Jack Lew said.

A Donald Trump Win Could Rock This Currency (and It’s Not the One You Think) – CNBC

The Australian dollar would suffer most if Donald Trump were to win the US presidential election, according to one foreign exchange strategist who calls the currency a “surprise trade” in this arena.

Banks Tighten Swift System Security After Hacks – Reuters

Banks are tightening the security of their Swift messaging networks following revelations that hackers are increasingly able to get into this system to steal money.

Why Bitcoin is Failing to Take Over the World – Coin Telegraph

As far as leading the digital currency revolution, Bitcoin just isn’t getting it done.

Regulatory News

US Dollar is Set to Remain Strong – China Post

Going forward, the futures market thinks that there is a 60-percent chance of the Fed raising interest rates in December, after the November presidential elections.

Brazil’s Central Bank Offers Dollar Liquidity After Outflows – Reuters

Brazil’s central bank has stepped up efforts to support foreign exchange liquidity as outflows frustrate investors who bet that the policies of the country’s new government would trigger large inflows of foreign capital, traders said.

China’s FX Regulator Says No Policy Hurdle to Moving Asset Sale Proceeds Overseas – Reuters

China has not set any “policy obstacles” for offshore institutions to move their proceeds from Chinese asset sales offshore, the country’s foreign exchange regulator said in an online statement.

Company News

Saxo to Offer New Order Type – Profit & Loss

Saxo Bank will launch a new order driven execution model for FX products and CFDs on commodities and indices in November.

StanChart Starts Direct Trading Between Yuan, Saudi Riyal, UAE Dirham – Reuters

Standard Chartered said it had started direct trading between the Chinese yuan, Saudi Arabia’s riyal and the UAE’s dirham, making it one of the first market-makers to trade those currency pairs in China’s interbank market.

ICBC Moscow President Calls Designation of Clearing Bank in Russia Big Step in RMB’s Internationalization –

The designation of an RMB clearing bank in Russia is a big step in China’s drive to boost international use of the Chinese currency, the head of a Chinese bank’s Moscow subsidiary has said.

Market Savvy

Dollar Falls Against Franc, Pares Gains vs Yen on Deutsche Bank Concerns – Reuters

The US dollar hit a more than one-month low against the Swiss franc and trimmed gains against the yen on concerns over Deutsche Bank, while increased expectations for a December Federal Reserve rate hike kept the greenback generally afloat.

Latest Deutsche Bank and Commerzbank Developments to Keep British Pound Pressured Against Euro and US Dollar – Pound Sterling Live

GBP is trading in mixed fashion, pulled up on one side by some good domestic data but ultimately kept in check by subdued global investor sentiment.

Won, Ringgit Lead Drop in Emerging Currencies as Yield Bid Wanes – Bloomberg

The South Korean won and Malaysian ringgit led declines in emerging-market currencies as concern about the financial health of Germany’s biggest lender sapped demand for higher-yielding assets.

South African Rand Falls Most in Three Weeks as Carry Unwinds – Bloomberg

South Africa’s rand tumbled a second day, leading declines against the dollar among major and emerging currencies.